Singapore Airlines Ltd said that it is likely to cut jobs after a quarterly net loss of S$138.3 million in March, the first since the same period in 2012. As of Mar 2016, the entire SIA group has about 24,000 staff under its payroll.
Chief Executive Officer Goh Choon Phong some jobs may become “irrelevant,” while some workers may need new skills. He added that it is too early to give an exact number, but the business review had begun more than six months ago and SIA had hired external advisers for help.
Amidst intense competition from regional discount carriers and Middle-Eastern rivals, SIA is under pressure to revamp its business and reduce cost, after reporting its first quarterly loss in 5 years.
One of SIA’s main rival, Hong Kong’s Cathay Pacific Airways Ltd. said last month that it would eliminate 600 jobs in Hong Kong as part of the biggest business revamp in two decades as it slipped into a loss for the first time in eight years.
Predicting a challenging 2017, with passenger and cargo yields — a key measure of profitability in the industry — under stress, Singapore Air said in May that it’s set up a dedicated transformation office to conduct a “wide-ranging review” to better position the group for long-term, sustainable growth.